On July 8, 2019, from G. W……..Ph.D., ON, Canada
Most major banks offer educational material to investors at no charge. How is the Monday Morning Millionaire Program different?
Monday Morning Millionaire Program Answer:
Thank you for this great question. The difference is enormous.
Since President Clinton repealed the Glass-Steagall Act which separated commercial banking from investment banking, the investment banking mindset came to dominate bank behavior both in the US and Canada. Investment banking revenue is a major component of banks’ earnings. Banks want:
- clients to trade
- to pick stocks and
- to buy the initial public offerings (IPOs) they underwrite.
More than a decade ago, a study of over 66,000 accounts at large discount broker showed that during the five-year period from 1991 to 1996, the accounts that traded the most frequently earned 11.4 percent. During that period, the market returned 17.9 percent! Concerning IPOs, over 8,000 were launched from 1980 to 2015. People who invested in Facebook, Amazon, Apple, Netflix, Google or Tesla made fortunes. If only….hindsight is flawless! For every spectacularly successful IPO, hundreds fail. Three years after launch, almost none have positive returns.
The Monday Morning Millionaire Program ensures that members earn the market return. Repealing the Glass-Steagall legislation was one of the primary causes of the 2008 crash according to Nobel Laureate Joseph Stiglitz.
The bank/client conflict of interest is unmatched.
Rebalancing a 50/50 market/cash allocation when the market drops 5% or rises 10% or more, allows a high school student to equal or beat the market.
I have personally been with TD Bank since I was a teen. It offers great education and the Monday Morning Millionaire Program often uses TD Bank material for member benefits.